Investing

Leaving my Employer's Investment Plan - options?

  • Last Updated:
  • Jun 13th, 2018 9:36 pm
Member
May 8, 2015
460 posts
259 upvotes
East York, ON

Leaving my Employer's Investment Plan - options?

Hello experienced investors,

Recently I've lost my job, and the relatively attractive employer's investment plan with the employer matching scheme, and lower MER. Now I have a few weeks to decide if I want to stay with Manulife, or would I be better off if I move my investments elsewhere.

Currently, I have there my Registered Pension Plan of about $34k, Structured RRSP of about $15k, and TFSA of about $31k. Right now it shows the total of about $80k.

Manulife has offered that I move in their Advantage Group plan. They said that with it, I could still enjoy a group plan. The smallest Investment Management Fee that I will have to pay under this plan is 1.55% ( for some index funds). Most are in the range of 1.60-1.90.
They said that other financial institution would want me to pay even over 2% in MER. I strongly suspect that this is not true.

Now looking for alternatives. Withdrawal would cost me $25 for each of my three accounts. However, a move might still be a better option financially. Or may be the recipient financial institution would even reimburse me, for my 80k package?

Any recommendations? I am not an expert investor, although I'd like to put some effort in it.

Thanks so much!
Last edited by Leasiderin on Jun 14th, 2018 7:43 am, edited 1 time in total.
2 replies
Deal Addict
May 17, 2012
3199 posts
2222 upvotes
ontario
Move it out, no reason to stay without the advantage of low MERs and employer matching.

I would move it out to a discount broker and begin the journey of self-directed investing. Not sure if you are comfortable with that idea but it is not as daunting as it (may) sound.

The RPP will be converted to a LIRA, and the RRSP & TFSA will remain in the same form.
Member
May 8, 2015
460 posts
259 upvotes
East York, ON
Thank you!

Okay, so I understand that I can consolidate all my TFSA and RRSP holdings into one brokerage company. Can I do the same with the RPP, converting them into a LIRA?

Now will research into the discount brokers such as Virtual Brokers, Questtrade, etc. I think I will have to visit them in person to set up accounts, get the forms and arrange transfer of my Manulife holdings?

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